Nifty Bank Achieves New Peak of 58,577.50 as Investors Anticipate Key Macroeconomic Updates

Nifty Bank achieved a fresh peak of 58,577.50, closing at 58,078.05, marking a 0.12% rise and continuing its upward trajectory. Nifty ended the previous session at 25,891.40, gaining 0.09% after reaching an intraday high of 26,104.20, nearing its all-time high of 26,277.35. Despite ongoing uncertainties, India VIX, a key market volatility indicator, rose by 3.85% to 11.73.

Investors are keenly awaiting significant macroeconomic updates on Friday, including the US CPI data for September 25 and the US and Indian Manufacturing and Services PMI reports. Additionally, attention is focused on Q2 earnings from companies like SBI Life Insurance, SBI Card, Dr. Reddy's, Aditya Birla AMC, ITC Hotels, and Coforge.

Om Mehra from SAMCO Securities noted that on the hourly chart, Nifty shows a slight momentum loss but remains constructive unless it closes below 25,780. The widening gap between short-term moving averages indicates a strong uptrend but suggests near-term overstretching. The RSI near 73 shows firm momentum while MACD remains positive with an upward histogram.

For Bank Nifty, Om Mehra observed that it stays above all key moving averages despite mild weakness on the hourly chart. The daily RSI is around 76 in overbought territory. MACD remains positive with a rising histogram at a slower pace, suggesting moderate short-term momentum. Support is near 57,800-57,700; the trend remains bullish unless it closes below this zone twice consecutively.

The Nifty Private Bank Index rose by 0.49%, closing at 28,567.10. Meanwhile, the Nifty PSU Bank Index increased by 0.28%, settling at 7,875.35. Om Mehra suggests maintaining a buy-on-dip strategy while considering minor consolidation or mean reversion at higher levels as healthy within the broader uptrend.

Stock Recommendations

Riyank Arora from Mehta Equities Ltd. recommends buying two stocks on October 24: Reliance Industries and Infosys.

Reliance Industries is forming a bullish base around ₹1,440 levels with steady investor accumulation. A move above ₹1,455 could enhance momentum towards targets of ₹1,500 and ₹1,540. The RSI indicates rising strength supporting a positive short-term outlook with a stop-loss at ₹1,420.

Infosys has broken out from its consolidation zone with improving volume and bullish technical indicators crossover. It shows potential to continue towards ₹1,570 and ₹1,600 if it sustains above ₹1,520 confirming the positive bias with a stop-loss advised at ₹1,495.

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